Acuity Brands reports record Q1 2015 results
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Net income for the first quarter of fiscal 2015 was $51.1 million, an increase of 15 percent compared with the prior-year period. Fiscal 2015 first quarter diluted EPS of $1.17 increased 14 percent compared with $1.03 for the year-ago period.
39
percent was the increase in adjusted net income in the first quarter.
Adjusted results for the first quarter of fiscal 2015 exclude a $10 million pre-tax special charge, or $0.15 diluted EPS, related to streamlining activities. Adjusted results for the prior-year fiscal first quarter exclude the benefit of a $5.0 million pre-tax insurance recovery, or $0.07 diluted EPS, associated with a fiscal 2013 loss resulting from fraud perpetrated at a freight payment and audit service firm formerly retained by the company.
We were extremely pleased with our record fiscal 2015 first quarter results.
Vernon J. Nagel, chairman, president, and CEO
Vernon J. Nagel, chairman, president, and chief executive officer of Acuity Brands, commented, "We were extremely pleased with our record fiscal 2015 first quarter results. Gross profit margin of 42.2 percent increased 90 basis points over prior year's first quarter, while adjusted operating profit margin of 14.9 percent increased 230 basis points over last year's first quarter adjusted operating profit margin.
"Our variable contribution margin, i.e., the incremental adjusted operating profit as a percentage of the increase in net sales, was over 33 percent. We believe our record first quarter results reflect our ability to provide customers truly differentiated value from our industry-leading portfolio of innovative lighting and control solutions along with superior service."
The year-over-year growth in fiscal 2015 first quarter net sales was due primarily to an increase in volume of more than 14 percent, partially offset by an estimated 1 percentage point net unfavorable change in product prices and mix of products sold (price/mix) and, to a lesser degree
an unfavorable impact from changes in foreign currency exchange rates. The increase in volume was broad-based across most product categories and key sales channels. Sales of LED-based products increased more than 70 percent from the year-ago period and represented approximately 42 percent of fiscal 2015 first quarter net sales.
Operating profit for the first quarter of fiscal 2015 was $86.7 million, an increase of $9.3 million, or 12 percent, over the year-ago period. Adjusted operating profit (excluding the impact of the special charge) for the first quarter of fiscal 2015 increased $24.3 million, or 34 percent, to $96.7 million compared with the year-ago period adjusted operating profit (excluding the impact of the insurance recovery) of $72.4 million.
Adjusted operating profit margin for the first quarter of fiscal 2015 increased 230 basis points to 14.9 percent compared with 12.6 percent adjusted operating profit margin for the prior-year period.
During the first quarter of fiscal 2015, the company recorded a pre-tax special charge of $10 million associated with actions to streamline the organization by realigning certain responsibilities, primarily within various selling, distribution, and administrative depar
ments, as well as for the consolidation of certain production activities. The special charge consisted primarily of severance and employee-related costs. Management expects to incur production transfer expenses and additional costs associated with these streamlining actions totaling approximately $1.0 million during the next two fiscal quarters. Management expects to achieve net cost savings in fiscal 2015 in excess of the pre-tax charges.
Cash and cash equivalents at the end of the first quarter of fiscal 2015 totaled $583.0 million, an increase of $30.5 million since the beginning of the fiscal year. Net cash provided by operating activities totaled $46.7 million for the first quarter of fiscal 2015 compared with $43.4 million for the year-ago period. ■